Borrow
Employment trend indicative of further cash rate decline
Progress towards full employment has stalled in the last six months, according to an economist who expects a flow-on effect to be reflected in changes to the cash rate in coming months.
Employment trend indicative of further cash rate decline
Progress towards full employment has stalled in the last six months, according to an economist who expects a flow-on effect to be reflected in changes to the cash rate in coming months.
Commenting on ABS Labour Force data at the end of last year, Dr Sarah Hunter, BIS Oxford Economics’ chief economist, said that looking at the labour market’s underlying trends, the workforce participation rate has fallen back as unemployment rates and underemployment rates both plateaued.
She forecast that wage growth is unlikely to reach 3 per cent year-on-year in the next 12 to 18 months, limiting the upward pressure on price inflation, and suggesting “a softer pace of growth in employment in the near term”.
As a result, Dr Hunter said she expects the Reserve Bank of Australia to cut the cash rate again early in 2020, taking it to 0.5 per cent.
“And if there are signs that conditions are deteriorating, we would expect the RBA board to implement further loosening (possibly including quantitative easing),” she concluded.
RELATED ARTICLES
About the author
About the author
Banking
Why central banks are ditching Treasuries for gold and what it means for business leaders
Gold’s renaissance is no longer just an investor narrative; it’s a reserve‑management strategy. Multiple reports indicate central bank gold holdings now exceed US Treasuries by value for the first ...Read more
Banking
AMP Bank GO strengthens fraud protection with innovative security measures
AMP Bank GO has emerged as a formidable player in the fight against financial fraud, with its innovative security measures setting new standards in the digital banking sector. Since its launch in ...Read more
Banking
APRA’s hybrid exit is a A$43bn catalyst: who captures the flow—bank credit or private credit?
Australia’s phase-out of bank hybrids isn’t just a regulatory clean-up—it’s a forced portfolio reallocation the size of a mid-tier super fund. Read more
Banking
AMP Bank GO adds business overdraft to mobile platform for small businesses
AMP Bank has launched a business overdraft feature within its mobile-first banking platform AMP Bank GO as cash flow concerns continue to affect small business owners across Australia. Read more
Banking
Bendigo Bank named most trusted bank in Australia for 10th consecutive quarter
Bendigo Bank has retained its position as Australia's most trusted bank, according to the latest trust rankings released by research firm Roy Morgan. Read more
Banking
Account-to-account and instant payments set to reshape global payments landscape
A new report from Capgemini predicts that instant payments will account for 22% of all non-cash transactions globally by 2028, signaling a major shift in the payments industry. Read more
Banking
Powell's Jackson Hole speech to shape market expectations on rate cuts
All eyes are on Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium, as investors anxiously await clues about the central bank's future rate decisions. Read more
Banking
Bendigo Bank economist forecasts stable rates for 2024, cuts in 2025
Bendigo Bank's Chief Economist David Robertson is maintaining his prediction that the Reserve Bank of Australia (RBA) will keep interest rates unchanged throughout 2024, with cuts likely to begin in ...Read more
Banking
Why central banks are ditching Treasuries for gold and what it means for business leaders
Gold’s renaissance is no longer just an investor narrative; it’s a reserve‑management strategy. Multiple reports indicate central bank gold holdings now exceed US Treasuries by value for the first ...Read more
Banking
AMP Bank GO strengthens fraud protection with innovative security measures
AMP Bank GO has emerged as a formidable player in the fight against financial fraud, with its innovative security measures setting new standards in the digital banking sector. Since its launch in ...Read more
Banking
APRA’s hybrid exit is a A$43bn catalyst: who captures the flow—bank credit or private credit?
Australia’s phase-out of bank hybrids isn’t just a regulatory clean-up—it’s a forced portfolio reallocation the size of a mid-tier super fund. Read more
Banking
AMP Bank GO adds business overdraft to mobile platform for small businesses
AMP Bank has launched a business overdraft feature within its mobile-first banking platform AMP Bank GO as cash flow concerns continue to affect small business owners across Australia. Read more
Banking
Bendigo Bank named most trusted bank in Australia for 10th consecutive quarter
Bendigo Bank has retained its position as Australia's most trusted bank, according to the latest trust rankings released by research firm Roy Morgan. Read more
Banking
Account-to-account and instant payments set to reshape global payments landscape
A new report from Capgemini predicts that instant payments will account for 22% of all non-cash transactions globally by 2028, signaling a major shift in the payments industry. Read more
Banking
Powell's Jackson Hole speech to shape market expectations on rate cuts
All eyes are on Federal Reserve Chair Jerome Powell's upcoming speech at the Jackson Hole symposium, as investors anxiously await clues about the central bank's future rate decisions. Read more
Banking
Bendigo Bank economist forecasts stable rates for 2024, cuts in 2025
Bendigo Bank's Chief Economist David Robertson is maintaining his prediction that the Reserve Bank of Australia (RBA) will keep interest rates unchanged throughout 2024, with cuts likely to begin in ...Read more
